MAK I N GSU S TA I N A B L ECO M M I T M E N T S An Environment Strategy for the World Bank S U M M A R Y December 2001 The World Bank Washington, D.C. The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. Manufactured in the United States of America First printing December 2001 In 2001, the World Bank completed the comprehensive two-year process of preparing its Envi- ronment Strategy, Making Sustainable Commitments: An Environment Strategy for the World Bank. It was endorsed by the Bank's Board of Directors and published in October 2001. It is also avail- able on CD-ROM. This Summary is an abridgment of that report. Cover image: Curt Carnemark; Nepal Cover design: Joyce Petruzzelli Images in text: World Bank Contents Introduction 1 Environment is an Integral Part of the Development Challenge 5 Our Record So Far 10 The Strategic Framework 14 Institutional Realignment 28 Conclusion 33 Maps 42 Contributors 47 BOXES 1 Goals for international development 6 2 What makes environmental problems different? 7 iii Making Sustainable Commitments -- An Environment Strategy for the World Bank 3 From protectionism to sustainable ecosystem management 8 4 Evaluation of the Bank's past environmental performance 11 5 The Comprehensive Development Framework 13 6 Integrating environment into poverty reduction strategies 16 7 Community-based natural resource management 17 8 Promoting good practice in environmental management 19 9 IFC's approach to environmental and social issues 20 10 MIGA's approach to environmental issues 21 11 Global environmental issues 21 12 Safeguard policies 25 13 Key benchmarks for monitoring Bank performance in Strategy implementation 32 FIGURES 1 Strategy consultations map 2 2 Environmental links to the dimensions of poverty 15 3 Burden of disease and environmental risks 18 4 GEF and MFMP commitments, fiscal 1992­2000 22 5 World Bank environmental lending, fiscal 1990­2000 24 6 Environmental and safeguard input into the Bank's decisionmaking and project cycle 26 7 Realigning partnerships 31 8 What's new in the Environment Strategy 34 TABLES 1 The burden of disease from major environmental risks 17 2 Strategic framework matrix 36 3 Strategic implementation and monitoring matrix 39 iv INTRODUCTION T o date, there has been no single source spelling out the World Bank's environmental strategy. For the first time, Making Sustainable Commitments provides a single, comprehensive strategy outlining the Bank's approach to the environ- mental issues of development. This publica- tion is a summary of the full report. The full report is published separately and is also available, together with background material and useful links, on the CD-ROM attached to this document. Making Sustainable Commitments is the culmination of a two-year effort involving extensive stocktaking, research, consultation, and feedback: ! The independent Operations Evaluation Department of the World Bank and the Strategy team reviewed the Bank's experi- ence and record in the environmental area over the past few decades to draw lessons for the Strategy. Making Sustainable Commitments -- An Environment Strategy for the World Bank ! Following initial discussions, several and endorsed the document on July 17, background papers and a discussion draft 2001. were prepared to stimulate broad debate both internally in the Bank and externally The consultations have played an important with a range of stakeholders. role in shaping the final document. We are ! Between May 2000 and May 2001, over 30 profoundly grateful to all those who have taken the time and trouble to contribute to formal and informal consultation meetings the process. took place in Sub-Saharan Africa, Latin America, the Middle East and North Making Sustainable Commitments outlines Africa, South Asia, East Asia, Europe, how the World Bank will work with client Japan, and North America. (See figure 1.) countries to address their environmental ! Applying the broad strategy framework, challenges and ensure that Bank projects and each Bank Region prepared a Regional programs integrate principles of environmen- Environment Strategy. These reports were tal sustainability. It sets a vision, objectives, instrumental in identifying areas of unique and a course of action for the longer term and concern to each Region, as well as underly- suggests specific actions, targets, and institu- ing themes that are common to all Re- tional measures for the next five years, as gions. described in Tables 2 and 3. Table 2 links ! Background documents and detailed proposed measures with key development reports on the consultation meetings and objectives, while Table 3 sets targets and outcomes were prepared and posted on the monitorable indicators for the Bank. Strategy website. Between August FIGURE 1. Strategy consultations map 2000 and the end of January 2001, Eastern Western Europe/ the Environment Strategy Europe Central Asia North America Consultation Website received nearly 35,000 download requests Middle for various papers. East/ North Africa East ! The draft Environment Strategy Asia/ Pacific went through an intensive review Latin America/ South Asia process. The Bank's management Caribbean Sub- Saharan and Board of Directors discussed Africa 2 S U M M A R Y The Strategy is in- these trends and to continued learning tended to be realistic from our past efforts, the Bank has also about what has to be been changing. It has reaffirmed its done; about our commitment to poverty reduction and strengths and weak- committed to a bottom-up, client-focused nesses; about how to development, and it is moving toward new utilize the resources lending approaches. Our work on the available to improve our environment must also adapt to these performance; and about changing conditions. the potential for our ! Deepening our commitment.To date, the assistance to have environment has been the concern of a positive development small, specialized group. This is clearly outcomes. To help insufficient. To make a substantial and achieve its goals, the lasting difference, we must ensure that Strategy adopts a environmental concerns are fully internal- threefold approach: ized throughout the Bank. ! Learning and If we are to help improve people's lives, applying lessons. The development opportunities, and prospects for Strategy builds on the achievements and a sustainable future, it is critical for the Bank lessons of both our own past efforts and to steer this course successfully. The Environ- those of others. It does not seek to change ment Strategy emphasizes the importance of the direction set at the Earth Summit in 1992 and articulated in the 1992 World integrating--or "mainstreaming" --environ- Development Report, but to internalize ment into country development programs, lessons learned in the last decade, bolster sector strategies, and investments. commitments, and accelerate progress toward integrating environment and Within a strategic framework, we recognize development. that one size does not fit all. The countries ! Adapting to a changing world. A number of served by the World Bank differ enormously trends--often referred to under the in their stage of development and in the common label of "globalization"--have nature of their economic, social, and environ- been reshaping the world. In response to mental concerns. It would be both presump- 3 Making Sustainable Commitments -- An Environment Strategy for the World Bank tuous and futile to define a small set of tion (IFC) and the Multilateral Investment specific problems that we would tackle in all Guarantee Agency (MIGA), share the overall or most of our client countries. A central vision, strategic framework, and objectives of theme of the Strategy, therefore, is the this strategy. They are, however, legally and importance of working in collaboration with financially independent and have different our clients and partners to identify the critical sets of owners and clients, structures and environmental issues that should be addressed mandates, staffs and toolkits. Accordingly, in specific circumstances. Detailed country specific operational and institutional implica- environmental diagnostic analysis-- based on tions of the strategy for these institutions National Environmental Action Plans differ. Boxes 9 and 10 summarize the ap- (NEAPs) and other strategies, along with proach to supporting sustainable development other country-specific assessments--is part of taken by IFC and MIGA, respectively. the input for the Bank's Country Assistance Strategies (CASs). Strategy making does not end with the publication of this document. Continuous The lessons learned and the operational and communication and collaboration with institutional details described in this docu- clients, partners, and World Bank staff in ment apply specifically to the WB--that is, diverse sector and country units, as well as the International Bank for Reconstruction systematic monitoring and assessment of the and Development (IBRD) and the Interna- Strategy's effectiveness, are essential to tional Development Association (IDA). its updating, improvement, and successful Other members of the World Bank Group, implementation. including the International Finance Corpora- 4 ENVIRONMENT IS AN INTEGRAL PART OF THE DEVELOPMENT CHALLENGE E conomic development has led to dramatic improvements in the quality of life in developing coun- tries, producing striking gains unparalleled in human history. But the picture is far from entirely positive. Gains have been unevenly distributed, and a large part of the world's population remains desperately poor. At the same time, environmental factors such as indoor and outdoor air pollution, waterborne diseases, and exposure to toxic chemicals threaten the health of millions of people, and natural resources--land, water, and forests-- are being degraded at alarming rates in many countries. Simultaneously, far-reaching trends--globalization, the increased role of the private sector and of civil society, and rapid technological advances--have been reshaping the world, causing development and environ- mental challenges to be ever more intertwined. At the end of this document, Maps 1­8 illustrate some of these trends. As a development institution, the World Bank has been involved in addressing environmental issues for many years. This Environment Making Sustainable Commitments -- An Environment Strategy for the World Bank Strategy draws on lessons learned on the basis is based on an understanding that sustainable of the Operations Evaluation Department's development, built on a balance of economic (OED's) 2001 review of the Bank's perfor- growth, social cohesion, and environmental mance on environmental issues; adjusts to a protection, is fundamental to the Bank's core changing global context; and reaffirms the objective of lasting poverty alleviation--a link Bank's commitment to environmental that has been recognized by international sustainability. It sets a direction for the World environmental conventions and in the Interna- Bank's future actions in the environment area tional Development Goals (IDGs) set forth in for the longer term, as well as specific actions the United Nations Millennium Declaration in for the next five years. It emphasizes the need 2000. (See box 1.) to tailor our assistance according to differences in institutional development and environmen- Many view concern over environmental issues tal management capacity in client countries. It as a rich-country luxury. It is not. Natural and BOX 1 Goals for international development The major international development institutions--including the United Nations (UN), Organisation for Eco- nomic Co-operation and Development (OECD), International Monetary Fund (IMF), and the Bank--are working to develop a common set of international development goals. The discussions, which are in progress, are focusing on integrating the International Development Goals agreed to by the OECD, UN, IMF, and the Bank with goals set forth in the UN's Millennium Declaration. The goals focus on key aspects of human well-being: poverty reduction, education, gender equality, health, and sustainable development. For each goal, indicators are specified to track progress toward the goal. There are seven broadly agreed goals: ! Eradicate poverty and hunger ! Achieve universal primary education ! Reach gender equality and empower women ! Reduce child mortality ! Improve maternal health ! Combat HIV/AIDS, malaria, and other diseases ! Ensure environmental sustainability. To monitor progress toward the environmental sustainability goal, there are three indicator targets: integrating the principles of sustainable development into country policies and programs and reversing the loss of environ- mental resources; halving, by 2015, the proportion of people without sustainable access to safe drinking water; and, by 2020, achieving a significant improvement in the lives of at least 100 million slum dwellers. 6 S U M M A R Y man-made environmental resources-- BOX 2 including freshwater, forest, marine, and What makes environmental problems agroecosystems--represent an important different? element of countries' wealth, and provide a Environmental problems have several unique char- acteristics: foundation for economic growth and liveli- hoods. ! Delayed impacts. Many potential environmen- tal changes have significantly delayed impacts. This argues for long lead times in implementing People in most developing countries are appropriate prevention or mitigation actions. ! Spatialimpacts.Sourcesandenvironmentalim- increasingly concerned about their environ- pacts are often separated in space (for example ment. They are particularly worried about the upstream/downstream or hills/valleys), making it necessary to have a framework that can ad- impacts of pollution and natural resource dress diverse stakeholder interests. degradation on their health and on prospects ! Cumulative impacts. Individual actions often have little effect on the environment, but the cu- for sustainable growth. While industrial mulative effect of many such actions can be countries have successfully addressed many of substantial. the environmental problems that directly ! Irreversible damages. A significant number of environmental outcomes are fundamentally ir- affect people's livelihoods, environmental reversible, and the implications of such changes factors continue to impose considerable are hard to predict. ! Needforgovernmentintervention.Environmen- human, economic, and social costs in many tal problems are often a consequence of mar- developing countries, threatening the founda- ket failures. Without government intervention to introduce regulations and create markets where tion for sustainable development. The they do not exist, the private sector alone can- economic costs of environmental degradation not achieve optimal environmental outcomes. ! Multisectoral links. Environmental problems re- have been estimated at 4 to 8 percent of gross verberate across a range of sectors through domestic product (GDP) annually in many many pathways, calling for coordinated policies developing countries. Yet dealing with and concerted efforts. ! Regionalandglobalimplications.Manyenviron- environmental problems is often difficult mental impacts have broad cross-boundary and because of their complex characteristics. (See global effects that require international frame- works and agreements to deal with them. box 2.) Distorted policies, governance structures, with a long-term horizon difficult to imple- institutional frameworks, incentives, and ment. The "grow now, clean up later" ap- pressures to export natural resources may proach to development, however, imposes favor a short-term focus, making programs high costs--costs that could be avoided by 7 Making Sustainable Commitments -- An Environment Strategy for the World Bank adopting policies and programs that prevent BOX 3 serious environmental damage. From protectionism to sustainable ecosystem management Although there are many "win-win" opportu- Conservation approaches have slowly evolved from nities to simultaneously achieve economic, a focus on species and strict protection to a focus on environmental, and social objectives, balanc- the sustainable use of biological resources and sus- tainable ecosystem management. ing these aspects of development through everyday decisions inevitably involves value According to the Convention on Biological Diversity, judgments and societal choices, which often "ecosystem management seeks to meet human re- quirements to use natural resources, whilst maintain- require difficult tradeoffs. (See box 3.) These ing the biological richness and ecological processes tradeoffs--among generations, social groups, necessary to sustain the composition, structure, and and countries--influence what different function of the habitats or ecosystems concerned." people see as sustainable development. These Ecosystem management is the ecological pillar of tradeoffs may only be apparent--that is, when sustainability, but its application in practical terms the time dimension is added and the full requires management approaches with varying de- social cost of the economic activity is consid- grees of intensity. Modern conservation approaches ered, they may disappear. Overfishing, for include protected areas, which have been catego- example, may temporarily improve people's rized by the World Conservation Union (IUCN) along a continuum from strict protection to intensive sus- income, making conservation seem costly. But tainable use. These can include biological corridors, the costs of conservation will pay off if they agrobiodiversity and pastoral systems, and heavily help avoid the collapse of fisheries, which modified landscapes--as long as their configuration deprives people of both nutrition and income and impact are compatible with broader ecosystem in the longer term. Similarly, the considerable management goals. social costs of pollution can justify the costs of measures that prevent and mitigate it. stakeholders affected by them. The challenge for the World Bank and other institutions While countries and societies may differ in concerned with development assistance is to their choices about environmental priorities work with clients to develop and implement and other aspects of sustainable development, policies, programs, and investments that not these choices have to be informed by good only support continued economic develop- analysis and the participation of the key ment but also: 8 S U M M A R Y ! Distribute the gains of development in a ! Build on the emerging global consensus more equitable manner, with a particular that natural resources and other valuable focus on reducing poverty environmental assets must be managed ! Avoid sacrificing the interests of future sustainably. generations to meet the needs of the current generation 9 OUR RECORD SO FAR T his Strategy discusses how we will work with our clients and partners to address these challenges. During the past decades, the World Bank has developed safeguard policies, procedures, and examples of good practice for addressing the environmental and social aspects of our projects, and these have become internation- ally accepted references and models. We have helped client countries develop National Environmental Action Plans (NEAPs) and strengthen their systems of environmental regulation through institutional development projects. We have built up a portfolio of investments devoted to environmental issues and have made considerable progress in "mainstreaming" environmental objectives into our sectoral lending programs. As an implementing agency for the financing mechanisms of international environmental conventions and their protocols, specifically the Global Environment Facility (GEF) and the Multilateral Fund for the Montreal Protocol (MFMP), we have taken on a key S U M M A R Y role in dealing with threats to the global BOX 4 environmental commons, such as climate Evaluation of the Bank's past change, desertification, biodiversity loss, the environmental performance depletion of the ozone layer, and the degrada- In 1999-2001, the World Bank's independent Opera- tion of international waters. tions Evaluation Department (OED) carried out a comprehensive assessment of the Bank's past envi- ronmental performance. The assessment--entitled, Our clients, often with our help, have made OED Review of the Bank's Performance on the En- significant progress. They have introduced vironment (2001)--concluded that the Bank had environmental policies, regulations, and made significant progress in safeguarding invest- institutions; implemented projects and ments financed by the Bank and in helping develop- ing countries address their environmental challenges. programs to improve environmental condi- It pointed out, however, that significant challenges tions; and heightened the public awareness of remain on both fronts. The report recommended em- environmental issues. Environment is now phasis on three key areas: clearly a significant concern on peoples' ! Demonstrating the critical role of environment minds, and it is on the political agenda in in sustainable development and poverty reduc- many of our client countries. Nevertheless, as tion, and incorporating environmental objectives was pointed out in the OED's environment into its core strategy and operations review, the Bank has been only partially ! ImprovingtheBank'senvironmentalsafe-guard policies and their implementation successful in supporting environmental ! Making a shift in the approach to global issues sustainability in client countries. (See box 4.) by focusing on local-global overlaps. Our achievements overall have fallen short of our own high expectations and those of complex interventions, and targeting tight others, even bearing in mind that by itself, the deadlines, without giving sufficient Bank can never stem the tide of global attention to the complexity and environmental change. Several broad factors practicalities of implementation and the have constrained the Bank's effectiveness in promoting sustainable development: competing pressures in our client coun- tries. ! Our commitments have sometimes ! The environment has yet to be fully outpaced our and our clients' capacity to mainstreamed into the Bank's operations. deliver. We have been overoptimistic in Although Bank professionals in general are setting environmental objectives, designing aware of the importance of environmental 11 Making Sustainable Commitments -- An Environment Strategy for the World Bank issues, they often see them as a self- needs, and environment often has a hard standing agenda and not as an element of time competing with other goals. their core task of supporting development and poverty reduction. Environmental We have learned many lessons about comply- professionals have an ongoing challenge to ing with safeguard policies, preparing and make the "business case" for sustainable implementing environmental projects, and development. undertaking policy dialogue. We have learned ! Awareness of the importance of environ- that in order to be effective, we have to mental issues is still evolving in many of demonstrate the benefits of environmental our client countries. While they increas- improvements and the links between environ- ingly recognize that environmental mental and development objectives; listen to concerns are important for making people and respond to our clients' aspirations development sustainable, our clients face and concerns; and assist with building difficult choices in allocating scarce awareness, commitment, and capacity to help resources among pressing development clients face their development and environ- 12 S U M M A R Y mental challenges. Our Strategy applies these BOX 5 lessons to our future efforts. The Comprehensive Development Framework Our Strategy also responds to a changing The CDF favors a holistic approach to development. It seeks a better balance in policymaking and imple- global context--globalization, rapid techno- mentation by highlighting the interdependence of all logical progress, the changing roles of private elements of development--social, structural, human, governance, environmental, macroeconomic, and fi- and public sectors, and civil society--and to nancial. This approach requires a transition from evolving new approaches to development donor-led development assistance strategies to the assistance--programmatic, as well as bottom- development of a country strategy led by a country itself, with vigorous participation by civil society and up community-based instruments. The Bank the private sector and with the support of multilateral has reaffirmed its commitment to poverty and bilateral organizations. The key principles of the CDF are: reduction and the International Development Goals. It has adopted the Comprehensive ! A long-term comprehensive vision ! Ownership by the country Development Framework (CDF), which ! Partnership with internal and external actors emphasizes a long-term, holistic, client- ! A focus on development outcomes. focused, and participatory approach to The CDF is meant to provide a compass--not a blue- development assistance. (See box 5.) To print. How the principles are put into practice will vary from country to country, depending on economic and respond to these changes, we have been social needs and the priorities of the stakeholders involved. adjusting our lending and nonlending instruments, including those that support community-driven development, poverty ment programs. Our work on the environment reduction strategies, and long-term develop- must adapt to these changing conditions. 13 THE STRATEGIC FRAMEWORK T he Bank's mission of lasting poverty reduction requires that development be sustainable. This means that proper attention has to be paid to the social and environmental aspects of development challenges, as stated in our mission statement: "To fight poverty with passion and professionalism for lasting results.To help people help themselves and their environ- ment by providing resources, sharing knowledge, building capacity, and forging partnerships in the public and private sectors... ." The goal of the Environment Strategy, therefore, is to promote environmental improvements as a fundamental element of development and poverty reduction strategies and actions. (See figure 2.) The Bank will do this by helping our client countries set and address their environmental priorities and challenges, including those of a regional or global nature, and by supporting sustainability through its operations. S U M M A R Y FIGURE 2 Environmental links to the dimensions of poverty Examples of environmental determinants Dimensions Natural resource of poverty base Elements of Rural and urban well-being Access to water livelihoods and sanitation Opportunity Air quality Health Ecological fragility Vulnerability to Security environmental Likelihood of change natural disasters Property rights Participation in decisionmaking Empowerment Access to environ- mental information This Environment Strategy outlines the instruments and actions are outlined in matrix priority actions the World Bank plans to take form in Table 2 at the end of this summary. to help its clients address the environmental challenges of development. In keeping with Our objectives the World Bank's mission of reducing poverty within a framework of economic develop- In support of our goal, the Strategy sets three ment, the Environment Strategy gives interrelated objectives: improving people's priority to issues where the links between quality of life, improving the prospects for poverty and the environment are particularly and the quality of growth, and protecting the strong. (See box 6.) Therefore, the Strategy quality of the regional and global environ- puts the environmental challenge into a local mental commons. perspective, focusing on people in client countries and on the way environmental Improving the quality of life conditions and resources affect them. The We will focus on three broad areas where Strategy's overall framework, its objectives, environment, quality of life, and poverty and the necessary adjustments in Bank reduction are strongly interlinked: 15 Making Sustainable Commitments -- An Environment Strategy for the World Bank BOX 6 Integrating environment into poverty reduction strategies As of September 1999, all low-income countries use participatory processes to prepare their own Poverty Reduction Strategy Papers (PRSPs) in order to obtain debt relief or concessional lending from the International Development Association (IDA) or the Poverty Reduction and Growth Facility (PRGF). Typically, the prepara- tion of PRSPs involves three stages: 1. Developing a comprehensive understanding of poverty and its determinants 2. Choosing the mix of public actions that has the highest impact on poverty reduction 3. Selecting and tracking outcome indicators. Because of the links between environment and poverty, and because a poverty reduction strategy must be environmentally sustainable over the long term, the Bank and the International Monetary Fund (IMF) have encouraged governments to consider environmental factors in their PRSPs. The Bank is helping to build the analytical base needed to quantify the links and prioritize potential environmental interventions compared with those in other sectors. Guidelines were prepared for the PRSP Sourcebook. Because poverty-environment links are location-specific, the Bank has taken a three-pronged approach toward helping integrate environmen- tal issues into the PRSP process in individual countries: (1) analytical work, (2) training, and (3) review. ! Enhancing livelihoods. Because poor people unsafe water and air pollution, are major often depend heavily on the productivity contributors to the total burden of disease and environmental services of ecosystems and impose significant economic costs, and natural resources, the World Bank will particularly for poor people. (See table 1.) help improve the sustainable management These risks are substantially greater in and protection of these resources. This developing countries than in developed includes helping communities sustainably countries. (See figure 3.) Our interventions manage natural resources such as land, will focus on cost-effective measures to water, and forests; helping clarify and prevent and reduce environmental health establish property rights; strengthening or risks through reducing people's exposure to reforming incentive systems that influence indoor and urban air pollution, waterborne how resources are used; and building the diseases, and toxic chemicals. Measures analytical base and institutional capacity to include improved access to cleaner com- improve natural resource management. mercial fuels by households; the phaseout (See box 7.) of leaded gasoline and the introduction of ! Preventing and reducing environmental cleaner transport fuels; and improved health risks. Environmental factors, such as design and coverage of safe water and 16 S U M M A R Y BOX 7 Community-based natural resource management Natural resource management projects increasingly try to incorporate a role for communities in their design and implementation. For example, the Mauritania Rainfed Natural Resource Management Project (fiscal 1997) is financing the first 5 years of a 20-year long-term program to activate a process of natural regeneration of land fertility, rangeland vegetation, and livestock and forest production. It will do this by encouraging the emergence of better-adapted and more sustainable approaches to resource use. This is likely to result in greater biodiversity conservation while generating more income and a better quality of life for the local people. The project, which will provide rural communities with effective empowerment in the management of their natural resources, is active in 47 villages in three regions of the country. A number of micro-projects (dikes, small dams, wells, women's veg- etable gardens, nurseries of indigenous tree species) are under way with the active participation of local commu- nities. sanitation services to increase health interventions will aim to reduce this benefits. vulnerability and the cost of natural disasters by supporting upland resource ! Reducing people's vulnerability to environ- management and payments for environ- mental hazards. Millions of poor people are mental services; assessing the impacts of vulnerable to natural disasters and environ- natural disasters; improving weather mental hazards, a threat that is expected to forecasting and the dissemination of increase as a result of climate change. Our weather-related information; providing TABLE 1 The burden of disease from major environmental risks Percentage of total DALYs in each country group Asia and Environmental health group AFR India China Pacific LAC FSE LDCs EME Water supply and sanitation 10 9 3.5 8 5.5 1.5 7 1.0 Malaria 9 0.5 0 1.5 0 0 3 0 Indoor air pollution 5.5 6 9.0 4 0.5 0 5 0 Urban air pollution 1 2 4.5 2 3 3 2 1 Agroindustrial waste 1 1 1.5 1.5 2 2 1 2.5 All causes 26.5 18.5 18.5 17 11 6.5 19 4.5 Note: Regions in the table slightly differ from World Bank Regions (see the definition in World Bank 1992 and in Murray and Lopez 1996).Definitions are as follows: AFR, Sub-Saharan Africa; Asia and Pacific, countries of East and South Asia, except for China, India and Pakistan; LAC, Latin America and Caribbean; FSE, former socialist economies of Europe (does not include Central Asia); LDCs, less developed countries (all regions and countries in the first six columns); EME, established market economies. Source: Lvovsky and others (1999) based on Murray and Lopez (1996), Smith (1998), and World Bank estimates. 17 Making Sustainable Commitments -- An Environment Strategy for the World Bank FIGURE 3 institutional frameworks for sustainable Burden of disease and environmental management; and (b) harness- environmental risks ing the role of the private sector to become an 300 people engine for sustainable development. 200 ! Supporting policy,regulatory,and institu- million 100 tional frameworks for sustainable environ- per (thousands) Ys 0 mental management. In cooperation with Developing Developed DAL client countries and development partners, countries countries we will help client countries (a) strengthen Other causes Environmental factors their environmental policy, regulatory, and Source: Lvovsky and others 2001. "Health and Environment." World Bank, Environment Department, Washington, DC. institutional frameworks with a special focus on local environmental institutions; information to communities about the (b) strengthen environmental assessment risks they face; and stabilizing hillsides and systems and practices; (c) reinforce the coastal zones. positive role of markets and the environ- mental benefits of sectoral and macroeco- Improving the quality of growth nomic reforms; and (d) support good It is not enough to improve the quality of governance, institutions for collective people's lives today; we have to ensure that action, increased transparency, access to short-term gains do not come at the expense environmental information, and public of constrained opportunities for future participation in decisionmaking. development. Sustainable environmental management, therefore, is an essential ! Supporting sustainable private sector condition for long-term economic growth and development. We will assist in harnessing lasting improvements in people's well-being. the role of markets and the private sector There is also increasing evidence that atten- in promoting sustainable development by tion to the environmental and social aspects (a) helping clients introduce environmental of business development increases the regulations that allow flexible market international competitiveness of our client mechanisms to achieve environmental countries. Recognizing the important changes objectives; and (b) helping to create in the respective roles of the public and markets for environmental goods and private sectors, our interventions will focus on services. As part of the World Bank (a) promoting better policy, regulatory, and Group, IFC and MIGA will promote, 18 S U M M A R Y through their investments and guarantees, BOX 8 environmental and social responsibility and Promoting good practice in good environmental management in the environmental management private sector. (See box 8 on the PPAH, The Bank Group's Pollution Prevention and Abate- ment Handbook 1998 (1999b) provides a compre- box 9 on IFC and box 10 on MIGA.) We hensive set of policy- and industry-specific guidelines will facilitate partnerships among the for international good practice in pollution manage- public and private sectors and civil society ment. It emphasizes pollution prevention rather than control and underlines the role of good management to resolve environmentally sensitive issues rather than sole reliance on technical solutions. and to agree on benchmarks for good The Handbook was prepared jointly by the Bank and environmental management. the IFC, drawing on technical expertise and inputs from the UNEP and the UNDP. WHO, bilateral gov- ernments, industry specialists, private sector orga- Protecting the quality of the regional and global nizations, and civil society provided extensive com- commons ments. The search for solutions to sustainability The Bank Group is making a special effort to dis- seminate the lessons and guidelines summarized in needs to go beyond individual countries. The the Handbook and to continue preparing, discuss- ing, and disseminating policy and sector-specific deteriorating quality of the regional and guidance notes on emerging issues. global commons threatens many developing countries. (See box 11.) They face potential aspects of global environmental challenges, on conflicts over shared resources, such as scarce reducing the impacts of the degradation of water resources and fertile land. They are also the global environmental commons on expected to suffer most of the worst effects of developing countries, and on interventions climate change, despite the fact that over 75 that are carefully targeted to benefit develop- percent of cumulative greenhouse gas (GHG) ing countries and local communities. There- emissions have been emitted by industrialized fore, in addressing global challenges, we will countries over the past 150 years, and per apply the following key principles: capita GHG emissions today are still five ! Focus on the positive linkages between times less in developing than in industrialized poverty reduction and environmental countries. protection ! Focus first on local environmental benefits, A poverty-focused environmental agenda will and build on overlaps with regional and require an increased emphasis on the local global benefits 19 Making Sustainable Commitments -- An Environment Strategy for the World Bank BOX 9 IFC's approach to environmental and social issues The International Finance Corporation's (IFC) environmental and social safeguard policies are closely harmo- nized with the Bank's safeguard policies, with minor adjustments to adapt them to the private sector context of its operations. (See box 13.) IFC's approach includes the following elements: ! IFC applies the World Bank Group's Pollution Prevention and Abatement Handbook 1998 to its invest- ments, with high-level management clearance required for any variation. To provide guidance for sectors for which no guideline is available in the Handbook, the IFC has developed its own guidelines. ! The Environmental and Social Review Procedure (ESRP), set forth in 1998, guides staff in the application of the policy and guideline framework to the environmental and social analysis and processing of all investments. ! IFC monitors the environmental and social performance of projects as part of its portfolio supervision.This includes (a) review of adherence to agreed environmental or corrective action plans and to other specific loan covenants and reporting requirements; and (b) the development of environmental and social man- agement capacity. ! An independent compliance advisor/ombudsman (CAO) oversees audits of the IFC's and MIGA's environ- mental and social performance, both on systemic issues and in relation to sensitive projects. ! In 1996, the IFC created the Environmental Projects Unit (EPU) to act as a catalyst and incubator for projects with specific environmental benefits. The EPU has begun to encourage the identification and implementation of ecoefficiency improvements in mainstream IFC projects. ! Address the vulnerability and adaptation GEF assistance currently covers four focal needs of developing countries areas: biodiversity, climate change, interna- ! Facilitate transfer of financial resources to tional waters, and the ozone layer. The Bank's client countries to help them meet the GEF program is dominated by projects costs of generating global and environmen- focused on biodiversity and climate change, tal benefits not matched by national which together account for more than 75 benefits percent of World Bank­GEF grants. Since ! Stimulate markets for global environmen- 1991, the Bank has committed more than tal public goods. $1.5 billion in combined GEF and MFMP funding, with associated funding of $5 billion The Global Environment Facility (GEF) has for climate change mitigation, biodiversity emerged as a facilitator and a funding conservation, the phaseout of ozone-deplet- mechanism for integrating global concerns ing substances, and protection of interna- into the development process. tional waters. (See figure 4.) 20 S U M M A R Y BOX 10 mental benefits and through mobilization MIGA's approach to environmental of associated funding. issues ! It can offer assistance--small-scale grants, Since the Multilateral Investment Guarantee Agency for example--not readily available under (MIGA) issued its first investment insurance contract conventional World Bank lending for in 1990, it has been applying World Bank environ- engaging nongovernmental organization mental policies and guidelines to MIGA projects. (NGOs) and other parts of civil society in In fiscal 1998, MIGA began drafting its own specific the country dialogue on environmental environmental assessment and disclosure policies, which reflect its business as an insurer of foreign management. investments. These draft policies, and the procedures for implementing them, were the subject of exten- BOX 11 sive discussions by MIGA's Board and management. The Board approved MIGA's environmental assess- Global environmental issues ment and disclosure policies and procedures in May Global environmental issues fall into one of two cat- 1999. egories: MIGA's Environmental Assessment Policy is the ba- 1. Global commons issues, which are directly related sic framework for MIGA's evaluation of the environ- to the maintenance of major components of Earth's mental and social soundness of a proposed project. systems, include: The policy requires the project sponsors to carry out an environmental assessment (EA) of the project. ! Climate change As explained in the policy, the level of detail of this ! Ozone depletion assessment varies with every project and depends ! Accumulation of persistent organic pollutants largely on the nature, magnitude, and significance of (POPs) the project's impacts on the environment and on lo- ! Loss of certain biodiversity elements, such as cal communities. MIGA then uses this assessment migratory species that cross national as the basis for its review and evaluation. borders and globally important genetic resources. The World Bank­GEF Program can play an To address these issues effectively, all countries need to take coordinated action. important role in implementing the objectives 2. Natural resource degradation at the global scale, of the Environment Strategy in four main ways: including: ! Most biodiversity issues not listed above ! It can provide a powerful extension of ! Degradation of international waters and marine other World Bank instruments to help ecosystems ! Land degradation and desertification address the quality of the regional and ! Degradation and loss of forest resources. global commons. Although these issues are largely national or ! It can generate local environmental regional in nature, the severity of the problem often benefits in the pursuit of global environ- requires coordinated international action. 21 Making Sustainable Commitments -- An Environment Strategy for the World Bank FIGURE 4 Our toolkit GEF and MFMP commitments, fiscal 1992­2000 $1,400 Environment is not a sector or GEF commitments $1,200 an add-on. It has been long MFMP commitments $1,000 recognized that environmental issues should be considered in $800 commitments millions) the early stages of decision- $600 MFMP (US$ making processes. The Envi- and $400 GEF ronment Strategy emphasizes $200 the importance of continuing $0 1992 1993 1994 1995 1996 1997 1998 1999 2000 our efforts to work with Fiscal year clients to integrate, or main- Note: Commitment amounts are based on World Bank management approvals. stream, environment into ! It can support the piloting of innovative investments, programs, sector strategies, and methods of sustainable natural resource policy dialogue mindful of the institutional management with local-global environ- requirements and capacity constraints. This mental links. translates into actions throughout the Bank. The Strategy stresses improvements in three As implementing agency of the Global key areas: (1) strengthening analytical and Environment Facility and Multilateral Fund advisory activities; (2) addressing environ- for the Montreal Protocol, we remain fully mental priorities through project and program committed to our mandate to help client design; and (3) improving the safeguard countries address the objectives of interna- system. tional environmental conventions and associated protocols, including the conven- Strengthening analytical and advisory activities tions on climate change, ozone, and Analytical and advisory activities provide a biodiversity. We will engage in these and foundation for defining strategic environmen- other partnerships that help facilitate techni- tal priorities and informing policy dialogue cal assistance, the transfer of financial and decisions on projects and programs. A resources and environmentally friendly systematic approach is needed to ensure that technologies, and the development of markets environmental considerations enter the for environmental goods and services. development planning process at an early 22 S U M M A R Y stage by taking a multisectoral and long-term environmental priorities and improve their view of development. environmental management capacity. We will pay particular attention to poverty- ! Country-level environmental analysis will environment linkages, the economic build on NEAPs and other country-led valuation of environmental resources and environmental work, as well as analyses of their degradation, and environmental undertaken by the Bank and development policy analysis. partners to assess environmental trends and priorities, policies, and institutional Addressing environmental priorities through capacity in managing environmental project and program design resources and risks. Country-level environ- Since 1992, lending through self-standing mental analytical work will become part of environmental projects has gradually shifted the diagnostic tools that inform country toward environmental lending as a compo- dialogue, poverty reduction strategies, and nent of sectoral projects. Environmental country assistance strategies (CASs). components are increasing in many sectors, ! Strategic--sectoral,regional,and policy- such as agriculture, energy, urban develop- focused--environmental assessments (SEAs) ment, and water and sanitation. (See figure will be used more systematically as analytical tools through a structured 5.) learning program involving clients and Addressing environmental priorities that partners for addressing complex cross- affect the long-term sustainability of develop- sectoral environmental issues and for ment requires a proactive approach. Some integrating environment at early stages in environmental problems are best addressed by sectoral decisionmaking and planning dedicated projects, others by integrating processes. environmental activities into sectoral projects ! In our advisory activities, we will respond and programs. Depending on client demand to client demand, priorities, and capabili- and circumstances, we will work on both ties and build on the Bank's comparative fronts with attention to the following areas: advantage in working across sectors and throughout the world to transfer good ! Improving the design and performance of practices in policy and technical issues. We environmental projects and components. Our will help clients set and address their own experience has shown that environmental 23 Making Sustainable Commitments -- An Environment Strategy for the World Bank FIGURE 5 carefully the proper sequencing of World Bank environmental lending, fiscal 1990­2000 policy reform efforts and specific 20,000 investments in each case. Environment portfolio 18,000 )s Environmental components in other sectors ! Applying a location-specific 16,000 n Total oilli 14,000 focus. Because the linkages between m 12,000 $ natural resource management and S 10,000 U( g 8,000 poverty are complex and location- ni d 6,000 ne specific and because implementa- L 4,000 tion capacity varies, efforts to 2,000 0 integrate environmental consider- 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 ations into investment projects, Fiscal year adjustment lending, and programs Note: Excluding GEF and MFMP lending, shown in figure 4. The Environment port- folio consists of projects, the primary objective of which is environmental improve- will clearly vary from country to ment. Environment components in other sectors include environmental components in the agriculture, energy, urban development, and water and sanitation sectors. country. We will rely on enhanced projects or project components work best analytical work and dialogue with when they are based on a good under- clients to assess the best location-specific interventions in priority countries. standing of the causes of the problem, are ! Supporting capacity development. Capacity- expected to have a major impact, and have building efforts will be targeted, based on the commitment and capacity of local client demand, and tailored to existing stakeholders, so that project outcomes are environmental regulatory and institutional sustainable after the project is over. We frameworks. We will collaborate with other will continue to ensure that the lessons development partners involved in environ- from our growing experience in environ- mental capacity development to improve mental projects are disseminated and overall development effectiveness. In a few applied to new projects. cases where strong commitment exists in ! Coordinating investments and policy reforms. the country to undertake environmental Some investment projects are unlikely to institutional reform, we will apply a bring lasting results in a distorted policy programmatic approach. environment. At the same time, individual ! Enhancing the environmental outcome of investment projects may lead to a dialogue adjustment lending. Considering the on policy reform. We will consider importance of the policy framework to 24 S U M M A R Y environmental sustainability, we will pay BOX 12 special attention to reinforcing positive Safeguard policies and minimizing potentially negative The following safeguard policies set forth mandatory environmental outcomes. Strengthened requirements to be followed by Bank operations: analytical work will inform policy dialogue, ! OP/BP 4.01 Environmental Assessment help identify environmental trends and ! OP/BP 4.04 Natural Habitats threatened resources, assess country ! OP/BP 4.36 Forestry institutional capacity to manage resources ! OP/BP 4.09 Pest Management sustainably, and prepare guidelines for ! OD 4.30 Involuntary Resettlement good practice. Systematic upstream reviews ! OD 4.20 Indigenous Peoples and monitoring will help ensure that ! OP/BP 11.03 Cultural Property environmental concerns are appropriately ! OP/BP 4.37 Safety of Dams integrated into the changing lending ! OP/BP7.50ProjectsinInternationalWaterways ! OP/BP 7.60 Projects in Disputed Areas profile. These issues will be further elaborated during the update and conver- These policies are complemented by: sion of the Operational Directive on ! OP/BP 17.50 Disclosure of Operational Infor- adjustment lending. mation. Notes: OP/BP = Operational Policy/Bank Procedures. OD = Operational Directive. Improving the safeguard system The Bank's safeguard system is an essential a series of actions designed to create better tool for integrating environmental and social linkages between policies and their applica- concerns into development policies, programs, tion in projects and programs. and projects by providing minimum require- ments that all Bank-supported operations We will follow a two-pronged approach: must meet. (See box 12.) We will continue improving the quality and consistency of the ! Addressing short-term priorities. Our application of our safeguard policies with immediate priority is to strengthen increased attention to results on the ground, compliance with the safeguard policies, where many issues are intertwined. Improving establish an integrated safeguard system, the safeguard system is a dynamic process and improve results on the ground. To this that involves both the Bank and its clients in end, we will (a) continue to strengthen the 25 Making Sustainable Commitments -- An Environment Strategy for the World Bank Bank's internal FIGURE 6 Environmental and safeguard input into the Bank's review, monitoring, decisionmaking and project cycle and tracking Country diagnostic studies system to improve ­ NEAPs, nssds, SEAs Country dialogue on on corporate consis- phase development strategy ­ Environmental indicators and vision ­ Other analytical and advisory tency and compli- ­ CDF services (AAA) ance in applying Pre-lending ­ PRSP SSPs the policies; (b) ­ Environment Strategy ­ Environmental aspects of sector integrate environ- CAS strategies mental, social, and Safeguard review and legal policies into Identification categorization (ISDS) Safeguard PCD policies an integrated EA/EMP/RAP/IPDP safeguard compli- operations ance system, Preparation PAD including the use of future the Integrated to Loan Environmental and Appraisal Documents social covenants Safeguard Data Sheet (ISDS); and Feedback PSRs/midterm Safeguard (c) help improve review compliance in-country capacity Supervision Implementation In country for safeguard Environmental and capacity to ICR social outcomes implement implementation and monitor through enhanced OED Environmental and training and Evaluation evaluation social outcomes capacity building. Note: EA: Environmental Assessment, EMP: Environment Management Plan, ICR: Implementation Completion Report, IPDP: Indigenous Peoples Development Plan, ISDS: Integrated Safeguard Data (See figure 6 for a Sheet, PAD: Project Appraisal Document, PCD: Project Concept Document, PRSP: Poverty Reduc- tion Strategy Paper, PSR: Project Supervision Report, RAP: Resettlement Action Plan, SEA: Strate- description of the gic Environmental Assessment, SSP: Sector Strategy Paper. way upstream environmental input and safeguard issues ! Reforming the safeguard system.In parallel, are integrated into the Bank's we will (a) respond to new challenges decisionmaking and project cycles.) posed by a greater variety of lending 26 S U M M A R Y instruments, including programmatic ciples of sustainable development, and create lending and projects implemented at the incentives and rewards for good performance grassroots levels; (b) help move safeguard by delegating responsibilities to borrowers considerations earlier into the with demonstrated capacity to manage the environmental aspects in their own programs. decisionmaking process; (c) work with clients and partners to coordinate and harmonize good practice; and (d) focus The need for selectivity increasingly on client ownership, capacity, The action agenda described above is diverse and safeguard systems. We will prepare a and challenging. In order to be effective, we medium-term plan for reforming the will have to be selective to guide implementa- safeguard system to adapt to a changing tion at three levels: lending profile, direct more attention to clients' own capacity for good environmen- 1. At the corporate level, the Strategy defines tal management, and develop a risk corporate environmental priorities in detail, management system that takes into and guides their integration into Regional account not only the risk characteristics of Strategies and country-level programming. 2. At the regional level, Regional Strategies projects but also the capacity of countries show the linkages between the corporate to comply with safeguards. Over the long strategic framework and the regional context, term, the Bank seeks to develop a single reflecting regional and sub-regional differ- unified safeguard policy to provide a ences. consistent approach. 3. At the country level, the Strategy provides a framework for setting priorities for environ- Our ultimate objective is to help clients mental assistance. Using the corporate introduce and implement their own safe- strategic framework, selectivity for environ- guards to manage their environmental mental assistance at the country level will be resources sustainably. To this end, we and our based on a diagnosis of environmental partners need to increase our emphasis on priorities and management capacity, country capacity development at the national and sub- demand, and consistency with the CAS. At national levels. We need to search for ways of the same time, the Bank is committed to assessing and helping develop in-country ensure the implementation of its safeguard capacity to adopt and internalize the prin- policies to all Bank operations in all countries. 27 INSTITUTIONAL REALIGNMENT S ustainable development is a long- term goal. Its achievement requires a concerted pursuit of economic prosperity, environmental quality, and social equity and calls for behavioral changes by individuals and organizations. Throughout the world, this change is occurring. Within the Bank, too, implementing the Strategy requires institutional change. We need to align our incentives, resource alloca- tion, and skills mix to accelerate the shift from viewing the environment as a separate, freestanding concern to considering it an integral part of our development assistance. We then need to put this understanding into practice in our analytical work, policy dia- logue, and project design. In order to strengthen the Bank staff's ability to manage this shift, those working on environmental issues have to be articulate advisors on the many linkages between poverty alleviation and environment and play S U M M A R Y an active, supportive role in the formulation ability to influence sector and country of country and sector programs. Table 3, at programs and will be assessed on their the end of this summary, outlines indicators effectiveness in this area. In the assessment of and actions of an institutional nature that the performance of environmental staff, would accompany the implementation of the particular attention will be paid to addressing Strategy. complex environmental challenges and implementing the safeguard policies. Accountability and incentives At the same time, a shift toward improved The Bank is reviewing its accountability environmental skills among framework to establish clear lines of responsi- nonenvironmental specialist staff will take bility and incentives throughout the institu- place through more systematic training in tion. This framework has to be client- safeguard policies, poverty-environment centered, acknowledging that our core linkages, and cross-sectoral issues. Tracking responsibility is to support the sustainable of training delivery will be improved to better development of our clients. Regional environ- target and customize both mandatory ment strategies and the annual business plans safeguards training and training on cutting- will help operationalize the Strategy. Consis- edge environmental issues. "Green Awards" tent with its mandate, the Environment will create positive incentives for Board will be responsible for guiding and nonenvironmental staff to mainstream overseeing the implementation of the Strat- environment into their operations and egy and will report regularly to senior programs. management and, on request, to the Board. Budget Training and skills mix Better integration of environmental concerns The increasing focus on cross-sectoral work into the Bank's work program is expected to and the shift in emphasis from project-level yield strong benefits in relation to all three safeguards toward integrated portfolio-level objectives of this Strategy, anchored as they risk assessment and quality enhancement will are in the Bank's mission of poverty allevia- require a gradual shift in staff skills. Environ- tion. Achieving these objectives, however, will mental staff will be trained to enhance their require that resources be dedicated to the task. 29 Making Sustainable Commitments -- An Environment Strategy for the World Bank Such resource allocations are premised on the addressing subregional and regional principle of exercising selectivity at all levels environmental challenges. and on the need to guide a transition toward new ways of delivering development assis- The Bank will work with interested partners tance, including programmatic lending. to bring about the successful implementation of the Strategy and will avail itself of trust Wherever possible, existing resources will be funds from bilateral partners and others. realigned within existing work programs. For Nevertheless, the comprehensive actions the Bank to meaningfully address the objec- needed to address the environmental chal- tives of the proposed Strategy, Bank budget lenges of economic development in client funding would need to increase over the next countries, as described in the Strategy, justify five years. Key elements of this incremental adequate deployment of Bank resources. Bank budget would be for: Partnerships ! Improving the safeguards and compliance system, including the strengthening of Partnerships with other development institu- compliance with policies and a compre- tions, civil society, and the private sector can hensive review of the safeguards policy contribute to our objectives and can effec- framework to fit the needs of a changing tively leverage scarce Bank resources. Apply- Bank ing the principles of the Comprehensive ! Mainstreaming support, with special Development Framework, partnerships at the emphasis on environmental mainstreaming country level are aimed at increasing develop- in IDA countries in accordance with IDA ment effectiveness and reducing transaction requirements; linking corporate environ- costs through coordination led by the mental priorities and global public goods countries and through the harmonization of with country programs, with an emphasis operational policies and practices of develop- on upfront work on preparation of Poverty ment partners. Reduction Strategy Papers (PRSPs) and CASs; facilitating cross-sectoral and cross- At the regional and global levels, we will institutional approaches and work pro- engage in partnerships where strong interna- grams to address environmental issues; and tional consensus exists for global action with 30 S U M M A R Y the aim of contributing to global public Monitoring progress goods, where close links can be established To ensure accountability and the capacity to with country assistance programs, and where learn from experience, we will introduce a significant resources can be catalyzed. We will performance monitoring and reporting continue our constructive partnerships in the framework that will track the Bank's perfor- framework of the GEF, the Multilateral Fund mance on the environment, monitor imple- for the Montreal Protocol, and the Prototype mentation of the Strategy, and report regu- Carbon Fund (PCF) to help implement major larly on progress. We will use the Internet and international conventions. We are currently other means of communication with key engaged in numerous other partnerships in a stakeholders to make available reports and range of areas. The Strategy provides a set of information about the Bank's environmental criteria for managing and evaluating partner- performance, discuss issues, and receive ships, and we will apply these to systemati- feedback. The core categories of periodical cally review and align our partnerships with institutional reporting to senior management the Strategy. (See figure 7.) and the Board will include (a) environmental FIGURE 7 Realigning partnerships W O R L D B A N K P R I O R I T I E S A N D E N V I R O N M E N T A L L I N K S Core competencies Corporate advocacy public goods Examples: Examples: Global Examples: ·Environmentally sustainable ·Empowerment ·Climate development ·Investment climate ·Water ·Urban development ·Governance ·Forests ·Rural development ·Clean air ·Biodiversity Environment Institutional Collaborative Corporate Selection Strategy engagements arrangements partnerships criteria Priorities Examples: Examples: Examples: - Quality of life · Memorandum of · WWF/WB · GEF - Linkages with - Quality of growth country work understanding Forest Alliance · MFMP - - Quality of regional Comparative with IUCN · Mesoamerican · PCF advantage and global commons · Collaboration with Biological · CEPF - Risks and resources WHO,UNEP, UNDP, ... Corridor 31 Making Sustainable Commitments -- An Environment Strategy for the World Bank projects and programs, (b) mainstreaming and key benchmarks for monitoring Bank policy integration, (c) safeguard compliance, performance in implementation.) and (d) training. (See box 13 for some of the BOX 13 Key benchmarks for monitoring Bank performance in Strategy implementation ! Country diagnostic studies carried out to assess environmental priorities and management capacity to inform CASs and PRSPs in 5­15 priority countries annually. Level of environmental mainstreaming in CASs improved. ! Targeted environmental input (analytical work and training) in 5­15 priority PRSP countries annually. ! Structured learning on SEAs based on 10­20 SEAs carried out annually to inform sector projects and programs. Level of mainstreaming in key sectors improved. ! Systematic client training delivering 20,000­25,000 "participant training days" annually. ! Improved safeguard compliance indicators. ! Ninety percent of all operational Bank staff and managers trained in environmental safeguards. 32 CONCLUSION R eal progress toward poverty reduction and sustainable develop ment requires changes in a challenging array of policies, tools, and institutional priorities. Figure 8 presents the key adjustments in the World Bank's ap- proaches that are envisioned by the Environ- ment Strategy and that are vital if the Strategy is to achieve its goals. The Strategy builds on and internalizes lessons learned in the past decade from our own efforts to support sustainable develop- ment, and from those of our clients and others, and it proposes to adjust our tools and institutional priorities to a changing global context and to changing Bank priorities. It places strong emphasis on development- environment links and on the environmental conditions that affect people's livelihoods, health, and vulnerability. In implementing the Strategy, we will give priority to certain aspects that are particularly Making Sustainable Commitments -- An Environment Strategy for the World Bank FIGURE 8 What's new in the Environment Strategy KEY FACTORS STRATEGIC INSTITUTIONAL OF CHANGE FRAMEWORK TOOLS REALIGNMENT LESSONS LEARNED ·Build on client ·Emphasis on · Systematic · Emphasis on commitment poverty-environment country institutional ·Set realistic targets links diagnostic commitments ·Focus on policy studies framework ·"Mainstreaming" CHANGING CONTEXT (improving cross- ·Globalization · Strategic · Strengthened sectoral links) and ·Increasing role of Environmental incentives for "Upstreaming" private sector Assessments (SEAs) mainstreaming (focusing on policy ·Stronger role of civil society framework) CHANGING BANK ·Focus on overlaps · Programmatic · Transparent ·Poverty focus between local and approaches monitoring and ·Comprehensive global benefits reporting Development Framework (CDF) ·Changing lending profile urgent, such as integrating environmental management capacity undertaken by client considerations into Poverty Reduction countries, development partners, and the Strategy Papers (PRSPs). Other elements of Bank; and on consistency with Country the Strategy, such as work toward systematic Assistance Strategies. We will ensure that application of country environmental analysis country assessments and programs consider and the Strategic Environmental Assess- and reflect regional and global situations and ments, will be undertaken gradually, focusing priorities with a view to harmonizing local, first on refining methodologies, coordinating regional, and global benefits, facilitating with clients and partners, piloting, and resource transfers for global action, and learning. helping client countries benefit from global public goods generated by international Our environmental assistance (including non- lending and lending services) to client action. countries will be tailored to country need and capacity based on demand; on a diagnosis of To date, environmental issues have too often environmental priorities and environmental been the concern of a small, specialized group. 34 S U M M A R Y This is clearly insufficient. To make a by different parts of societies, and the support substantial and lasting difference, we must of the development community. ensure that environmental concerns are fully internalized--"mainstreamed"--into all Bank The Environment Strategy is clearly, and activities. Internally we can strengthen our deliberately, for the long term. After all, its institutional commitment to the Strategy's ultimate goals--sustainable development and objectives, and we can play a leadership role in lasting poverty reduction--stretch into the more precisely measuring the impact of future. Short-term gains, as experience has environmental interventions. too often shown, can be overwhelmed by larger adverse changes. We are looking to The success of the Strategy, however, depends long-lasting achievements. That does not on more than the Bank's actions. The Bank imply a lack of action in the meantime. We can help develop capacity in addressing are not beginning from a standing start; we environmental issues in client countries, and it can become a role model in supporting have the advantage of a well-established work program and an ever-expanding body of environmental sustainability in its operations. But in the end, the commitment of countries experience in environmental issues. Building on this foundation, we will work with our is needed if they are to take the necessary clients, together with development partners, measures toward making their development to move forward toward creating a better and sustainable. This is a gradual process that more sustainable world for all. requires time, perseverance, a concerted effort 35 36 Table 2 Strategic framework matrix Strategic focus Adjustments in Bank instruments and actions Analytical and advisory Development objectives Intermediate goals activities Policy integration Project design and lending Improve the quality of life Enhance livelihoods of the poor · Reduce land degradation, combat · Provide training on · Enhance analytical work and · Reflect economic, social, and through improved natural desertification, and restore sustainability and resource cross-sectoral dialogue and ecological benefits in project resources management. degraded landscapes management issues in client training on poverty- design · Increase incomes · Promote sustainable forest countries environment issues in priority · Adopt a long-term perspective · Enhance long-term management · Develop and apply practical PRSP countries and CASs on NRM by using long-term productivity · Reduce rates of biodiversity loss tools for measuring the value · Integrate environment-related lending instruments, e.g. APLs · Improve poor people's (genes, species, and ecosystems) of environmental services indicators into PRSPs · Integrate sustainable ecosystem access to natural resources · Improve land tenure systems and · Undertake studies on access · Help establish incentive management objectives into property rights and use of natural resources as frameworks that promote infrastructure and rural · Support communal natural impacted by macro policy and sustainable NRM, including development projects resource management political frameworks (a) removing policy-induced · Support participatory tenure and · Establish pilot systems of · Undertake studies on resource distortions that undermine property right reform projects payments for environmental degradation and productivity sound NRM; and (b) using services and their linkages to poverty economic instruments to · Help assess the state of address externality problems ecosystems and their links to · Promote institutional reform livelihoods in client countries focused on user organizations · Develop good practice in and cost recovery integrating economic and social factors into ecosystem management Protect people's health from · Improve air quality (particularly · Undertake cross-sectoral · Integrate environmental health · Design projects based on environmental risks and pollution concentrations of fine assessments of the key sources issues into PRSP dialogue, integrated air quality assessment to reduce the disease burden. particulates and lead) in cities of environmental health training, and indicators in the urban, transport, and Reduce: · Increase the share of cleaner problems · Promote market-based energy sectors · Child mortality commercial fuels and improved · Identify cost-effective solutions to environmental · Support the switch to cleaner · Respiratory diseases cooking/heating systems in measures to reduce health problems relevant for fuels (e.g. biomass to LPG · Blood lead levels households to reduce indoor air environmental health risks in poverty reduction and growth conversion in rural households, · Deaths due to malaria pollution sectors, e.g. water, energy, · Integrate health and coal-to-gas in urban · Exposure to toxic substances · Phase out leaded gasoline transport, agriculture environmental linkages into households) · Increase the coverage of water · Undertake studies of policies the implementation of PRSPs · Support water supply and supply and sanitation and and options to reduce the and CASs sanitation, energy, and irrigation facilitate hygiene and behavioral health impacts of indoor air · Facilitate dialogue on policy projects that have specific change pollution reforms and investments environmental health outcomes · Improve drainage in irrigation · Support lead phaseout programs that lead to least cost based on integrated water projects initiatives and actions, clean solutions to air quality resource management · Reduce the generation and fuel studies, Clean Air problems including the impacts of industrial wastes and Initiatives and programs, and coordination of transport, toxic materials information dissemination and environment and energy learning programs policies · Raise awareness among various stakeholders of environmental health issues Reduce people's vulnerability to · Raise awareness of the · Study the social and economic · Include disaster prevention and · Support community-based environmental risks, including potentially high economic and impacts of natural disasters management in policy ecosystem service initiatives to moderate and extreme natural social returns that investments in and assess the vulnerability in dialogue reduce the impacts of flooding events. vulnerability reduction can yield countries/sub-regions with a · (reforestation, conservation, and Promote the integration of history of natural disasters restoration of wetlands) Minimize: · Strengthen regional institutions vulnerability reduction · Loss of life and livelihood to improve weather forecasting, · Develop a framework for measures in sectoral planning · Build and strengthen early dissemination, and verifications vulnerability assessments, and regulatory reforms warning systems, including · Injuries and disabilities systems disaster preparedness, and · community-based systems for Support the integration of · Temporary and permanent · Enable adoption and encourage early warning systems effective dissemination of disaster management into information dislocation enforcement of building codes · Support the preparation of regional, national, and local · Destruction of social, physical, and land use policies building codes, siting, and land land use and development · Support vulnerability reduction use guidelines plans and water resources investments, including and natural capital · Promote resilience through better management policies, investments for adaptation to management and protection of · Develop learning programs on strategies, and planning climate change the natural resource base planning, predicting, and adapting to climate change Improve the quality of growth Promote policy, regulatory and · Promote the introduction and · Strengthen client capacity · Strengthen the integration of · Increase support to priority institutional frameworks for enforcement of efficient through training, advisory environmental aspects into countries, identified in Regional environmentally sustainable environmental and NRM services, and technical CDFs, PRSPs, and CASs Environment Strategies and growth. institutions, policies, and assistance in environmental · Emphasize the linkages business plans, to help · Improve the effectiveness of regulations assessment, policy, between public expenditure, strengthen environmental environmental regulatory · Increase national and local management and enforcement poverty reduction, and management framework frameworks in client countries capacity to adopt and implement · Enhance analytical work to environmental quality · Use policy-based lending to · Enhance the integration of environmental regulations and strengthen the application of · Emphasize sectoral reform address key environmental and environmental concerns in EA systems safeguards in client countries projects that promote NRM issues sectors that affect the · Help integrate environmental · Undertake regional initiatives environmentally appropriate · Promote environmental environment, e.g. energy, concerns in projects and to strengthen and develop EA policies and instruments (e.g. responsibility and good agriculture, transport programs capacity water and energy sectors) environmental management · Promote sustainable financing · Promote the adoption of · Transfer good practices and · Promote policies that support practices in the private sector of environmental services independently verifiable good relevant lessons learned in private sector participation and through IFC investments and · Promote good environmental environmental management and environmental policy, sustainable natural resource MIGA guarantees practices in private sector natural resource use practices in management, and technical management in service · Support the establishment of development the private sector issues across Regions and provision (e.g. energy, markets for ecosystem services · Encourage the private sector's · Increase the flow of private countries transport, and water) and the adoption of independent participation in markets for sector investments to · Identify good practices and consistent with sound certification of sustainable environmental goods and environmental projects promote environmentally and regulatory frameworks for natural resource use services socially sound private sector managing the resource development · Address environmental issues · Develop and apply systematically in privatization benchmarks and good and private sector development 37 practices in environmental programs management for key areas of Bank operations 38 Table 2 Strategic framework matrix (continued) Strategic focus Adjustments in Bank instruments and actions Analytical and advisory Development objectives Intermediate goals activities Policy integration Project design and lending Protect the quality of regional and global commons Address transboundary, regional · Help client countries benefit · Build capacity among client · Help understand linkages · Focus interventions on and global environmental from global public goods country institutions to consider between global public goods improving local environmental problems. · Help countries to address local, the regional and global and national development quality and management that national, and regional dimensions of national strategies also provide regional and global · Reduce the impacts of environmental priorities in a sustainable development · Mobilize external resources to benefits transboundary and regional manner that also results in global strategies help integrate global · Promote lending for environmental problems benefits · Support the assessment of the environmental concerns into biodiversity through NRM · Promote equitable solutions to · Enhance countries' capacity to vulnerability of client sectoral strategies for forestry, projects that address sustainable global environmental problems participate in global countries' agriculture, forest, water, energy and rural use of ecosystems and their · Improve countries' capacity to environmental conventions water resources, coastal zones, development services adapt to changing global · Enhance capacity in countries to and urban infrastructure to · Link local and global · Support efforts to build capacity environments. reduce vulnerability to natural climate change as part of a environmental issues to and invest in international disasters and impacts of climate broader poverty reduction development and poverty waters, and pilot river basin change. strategy reduction strategies approaches to water resources · Help client countries to access · Support efforts by riparians · Link conservation and management markets for global public goods and littoral communities to sustainable use of biodiversity · Use GEF funds strategically to (e.g. trade in greenhouse gas diagnose, analyze, and plan with NRM and poverty better blend with and catalyze emissions) actions to address the dialogue Bank and other funding to help degradation of shared · Mainstream energy efficiency, enhance the livelihood of the ecosystems renewable energy, poor and reduce vulnerability · Support client capabilities to vulnerability­reduction, and · Support clients' participation in address Persistent Organic climate adaptation activities in and benefit from trade in Pollutants (POPs) and other relevant sectors environmental goods and toxic pollutants · Facilitate the phaseout of the services through the Prototype · Support client learning consumption and production of Carbon Fund and to better programs on understanding the ODS and POPs through prepare for the CDM. implications and national programs and use of responsibilities under global market-based instruments environmental conventions Table 3 Strategy implementation and monitoring matrix Objectives Medium-term target (5-year) Fiscal 2002 target: Realignment with the Strategy Strengthen analytical and advisory activities Strengthen country-level · Complete about 5-15 country diagnostic studies annually in connection with · Review good practice and refine methodology for environmental analysis CAS processes preparing country diagnostic studies in and advisory activities to · Improve environmental sustainability indicators and mainstream them into coordination with client countries and inform country dialogue country indicators development partners · Refine methodologies and mainstream economic assessment into project · Prepare country diagnostic studies in connection analysis including the assessment of climate change impacts with CASs preparation · Develop and disseminate good practice case studies and guidance notes on · Prepare good practice and guidance notes for a environmental policy and regulatory issues number of key issues · Strengthen client training and capacity development activities in · Develop and start implementing a client training environmental management and capacity development program Strengthen analytical · Provide analytical and capacity development support on demand to about 5-15 · Continue analytical work and development of work on poverty- PRSP processes annually in addressing environmental sustainability methodology, including enhanced use of environment linkages and · Improve the understanding of poverty-health-vulnerability linkages and household survey data and develop a typology of inputs to PRSPs improve assessment methodologies in countries where household survey data country-environment links are available · Develop training programs and a system to share · Systematically share knowledge with decisionmakers in PRSP countries on knowledge with decisionmakers in PRSP poverty-environment issues and effective interventions to address them countries on poverty-environment issues and effective interventions to address them · Support upstream environmental analytical work in at least 5 countries preparing PRSPs · Undertake an ex-post review of environmental aspects of PRSPs Use Strategic · Undertake a structured learning program on SEAs including the development · Develop and disseminate methodologies, Environmental and dissemination of good practice based on about 10-20 SEAs annually procedures, and guidance for SEA application Assessments (SEAs) · Use SEAs regularly as a tool for upstreaming environment into policy · Commence a series of priority SEA studies more systematically to dialogue and improvement in the quality of sector operations · Undertake Energy-Environment Reviews as part address environmental · Integrate the findings of Energy-Environment Reviews into project and of implementing Fuel for Thought concerns early in sectoral program design decisionmaking and planning processes Improve project and program design Mainstream environment · Achieve satisfactory coverage of environmental issues in CASs where · Establish a process for identifying priority CASs into CASs environmental issues are strongly linked to country priorities and supporting CAS preparation · Undertake in collaboration with OPCS an assessment of environmental coverage in CASs Improve the performance · Achieve satisfactory or better QAG ratings for quality at entry and supervision · Maintain QAG quality at entry and supervision and development for at least 90 percent of the environment portfolio performance ratings for environmental projects effectiveness of · Improve corporate environmental portfolio tracking, quality assessment, and and programs environment projects and 39 enhancement system · Establish a portfolio quality enhancement programs · Reduce the number of environment projects at risk mechanism · Review and improve the alignment of the environment portfolio with strategic priorities · Review the development effectiveness of environment projects and programs 40 Table 3 Strategy implementation and monitoring matrix (continued) Objectives Medium-term target (5-year) Fiscal 2002 target: Realignment with the Strategy Mainstream environment · Increase the extent of measurable mainstreaming over current levels in · Establish cross-sectoral work programs into sector programs and selected sectors · Establish scorecards and a mechanism for portfolios · Improve the integration of GEF resources into project and program lending monitoring, review, and feedback on · Review environmental activities in other sectors and their alignment with the environment mainstreaming in key sectors Strategy · Implement joint work-programs with other sectors and networks to address priority environmental objectives Improve the safeguard system Strengthen the · Establish an integrated risk management framework · Establish and implement an integrated safeguard implementation of · Strengthen corporate consistency and oversight system and operationalize the Integrated safeguard policies, · Integrate safeguard tracking and reports on safeguard policy compliance into Safeguard Data Sheet (ISDS) including the use of a project management system · Establish and operationalize a corporate tracking system for · Adopt and use compliance indicators on a routine basis for the entire portfolio safeguard compliance tracking and monitoring safeguard compliance by · Establish and meet targets for safeguard performance during quality at entry system policy and supervision in QAG reviews · Strengthen corporate oversight · Achieve target ratings for the environmental aspects of quality at entry and supervision for the Bank's portfolio · Review all projects at risk and take measures to reduce risk · Establish systematic staff safeguard training program Review the current · Develop the medium-term workplan for reforming the safeguard system · Develop a medium-term workplan for reforming safeguard policies and · Address safeguard policy issues in a consistent manner by undertaking regular the safeguards system evaluate their application reviews to identify lessons · Identify good practice and guidance for to new lending addressing safeguard policy issues in sector instruments and changing adjustment lending and new lending instruments approaches to such as CDD projects development assistance Work with clients and · Engage with at least 10 countries in discussions on in-depth EA capacity · Agree on a methodology for client capacity other development assessment and strengthening assessment institutions to review and · Implement a comprehensive client safeguard training plan · Engage with at least two countries in discussions strengthen client on in-depth EA capacity assessment and safeguard capacity, and strengthening harmonize safeguard · Prepare and pilot a comprehensive client procedures safeguard training plan Support institutional realignment Improve incentives for · Establish a comprehensive performance evaluation, incentive and reward · Give specific attention to cross-sectoral work in work on cross-sectoral system for cross-sectoral work annual results agreements for all environmental activities and policy staff issues. · Launch Green awards Achieve a shift in skill · Implement strategic human resource development · Define the needs in cross-sectoral skills and a mix through training, · Undertake targeted staff training on cross-sectoral issues plan for strategic human resource development strategic hiring and joint · Provide safeguard training to all managers of A and B rated projects and to · Develop targeted pilot staff training programs for appointments others on demand environmental mainstreaming in selected sectors · Train 90 percent of all operational staff, including managers, in safeguards · Continue to refine safeguard policies training policies program and launch safeguard policy training for · Provide environmental training for staff in other sectors on demand on managers development-environment issues · Provide training on demand Improve the funding · Operationalize the Mainstreaming Fund with regular reporting and feedback · Set up Mainstreaming Fund and develop mechanism for · Undertake an evaluation of the Mainstreaming Fund to assess its effectiveness procedures environmental activities · Align the use of trust funds with strategic priorities · Review the use of trust funds and their alignment in the Bank with the Strategy Leverage the role of · Realign partnerships with strategic objectives · Update and evaluate the partnership portfolio institutional engagements · Improve governance, management, and reporting on partnerships · Set guidelines for improving governance, and partnerships to management, and reporting on partnerships support the implementation of the Strategy Undertake systematic · Establish and operationalize an environmental management system · Develop a systematic performance monitoring monitoring and reporting and reporting framework on performance · Establish a performance monitoring and reporting unit in ENV · Start regular reporting on the implementation of the Strategy 41 Making Sustainable Commitments -- An Environment Strategy for the World Bank Map 1 Gross domestic savings (percentage of GDP) Note: Gross domestic savings are calculated as the difference between GDP and public and private consumption. Sources: World Bank 2001; World Development Indicators 2001. Map 2 Genuine savings (percentage of GDP) Notes: Genuine domestic savings are indicators of economic and environmental sustainability. They measure the true rate of savings in an economy after taking into account the cost of depleting natural resources and the damage caused by pollution. They are calculated as the sum of gross domestic savings and investments in human capital less depreciation of produced assets and the depletion and degradation of the environment. By this measure, some countries (shown in yellow) appear to be unsustainable as their savings rates are less than the combined sum of conventional capital depreciation and natural resource depletion. Sources: World Bank 2001; World Development Indicators 2001. 42 S U M M A R Y Map 3 Health burden associated with waterborne diseases (DALYs per 1,000 people) Notes: The main causes of waterborne diseases are lack of access to safe water and sanitation and inadequate hygiene. DALYs (disability-adjusted life years) are a standard measure of the burden of disease. The concept combines life years lost due to premature death and fractions of years healthy life lost as a result of illness or disability. Years of life lost at each age are valued differently reflecting different social weights usually placed on illness and premature mortality at different ages. Sources: Murray and Lopez 1996; World Bank estimates. Map 4 Estimated ambient concentration of particulates (PM ) in urban 10 areas (µg/m3) Note: Most of the adverse health effects of exposure to air pollution are attributable to particulate matter smaller than 10 microns in diameter (PM10). Sources: WDI 2001; World Bank estimates. 43 Making Sustainable Commitments -- An Environment Strategy for the World Bank Map 5 Population in areas of relative water scarcity Notes: An area faces relative water scarcity if the mean annual demand for domestic, industrial and irrigated agricultural uses is greater than 40 percent of the mean annual surface and subsurface runoff for the area. The colors indicate the population in each area of relative water scarcity. Source: Vorosmarty and others 2000. Map 6 Areas of high biodiversity importance Notes: Areas in green have been identified either as "hotspots" by Conservation International, as "biologically-important ecoregions" by World Wildlife Fund, or "endemic bird areas" by Birdlife International. Areas in yellow contain "reefs at risk" as identified by World Resources Institute. Sources: Bryant and others 1998; Mittmeier and others 2000; Olson and others 2000; Stattersfield and others 1998. 44 S U M M A R Y Map 7 Per capita CO emissions (metric tons) 2 Notes: CO2 accounts for the largest share of greenhouse gases, which are associated with global warming. Variations in per capita emissions across countries reflect differences in the level of economic activity, energy efficiency, and pollution intensity. Sources: World Bank 2001; World Development Indicators 2001. Map 8 CO emissions per PPP-adjusted GDP (kg) 2 Notes: PPP-adjusted GDP is GDP converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GDP as the U.S. dollar has in the United States. Variations in emissions per PPP-adjusted GDP across countries reflect differences in energy efficiency and pollution intensity. Sources: World Bank 2001; World Development Indicators 2001. 45 CONTRIBUTORS T he preparation of the Environment Strategy was overseen by the Environment Board, chaired by Environment Director Kristalina Georgieva, and co-chaired by Robert Watson, Chief Scientist and Director of the Environmentally and Socially Sustainable Development Network (ESSD). Kristalina Georgieva guided the Strategy preparation process. All members of the Environment Board played an active role in the strategy prepara- tion process: Richard Ackermann (South Asia Region), Sherif Arif (Middle East and North Africa Region), Glen Armstrong (Interna- tional Finance Corporation), Charlotte Bingham (Africa Region), Zafer Ecevit (East Asia Pacific Region), David Freestone (Legal Department), Jane Holt (Europe and Central Asia Region), Anupam Khanna (Develop- ment Economics Vice Presidency), Michele de Nevers (World Bank Institute), Maria Teresa Serra (Latin America and Caribbean), Making Sustainable Commitments -- An Environment Strategy for the World Bank Martyn Riddle (International Finance General guidance was provided by the Corporation), and David Wheeler (Develop- Operations Policy Committee, which is ment Economics Vice Presidency). chaired by Shengman Zhang, and the ESSD Council, which is chaired by ESSD Vice Magda Lovei (ENV) managed the preparation President Ian Johnson. The preparation of the of the Environment Strategy. The core six Regional Environment Strategies was Strategy drafting group also included Julia overseen by Regional Sector Directors and Bucknall (ECSSD), Gordon Hughes (Con- Managers: Richard Ackermann (South Asia), sultant), Stefano Pagiola (ENV), and Lars Hans Binswanger and Roger Sullivan Vidaeus (ENV). Anjali Acharya (ENV), (Africa), Kevin Cleaver and Jane Holt Kulsum Ahmed (LCSES), Sherif Arif (Europe and Central Asia), Zafer Ecevit (MNSRE), Aziz Bouzaher (SASEN), (East Asia and Pacific), Doris Koehn and Gonzalo Castro (ENV), Kirk Hamilton Salah Dargouth (Middle East and North (ENV), David Hanrahan (ENV), Martin Africa), and John Redwood and Teresa Serra Fodor (ENV), Hans-Olav Ibrekk (ENV), (Latin America and the Caribbean). Todd Johnson (ENV), Agi Kiss (AFTES), Stephen Lintner (ENV), Kseniya Lvovsky The main authors of Regional Environment (SASEN), Ajay Mathur (ENV), Jean-Roger Strategies were Teresa Serra and Kulsum Mercier (ENV), Judith Moore (ENV), and Ahmed (Latin America and Caribbean Mahesh Sharma (ENV) all participated in the Region), Aziz Bouzaher (South Asia Region), Strategy working group. Many others contrib- Todd Johnson (East Asia and Pacific Re- uted or provided advice and comments, gion), Agi Kiss (Africa Region), Sherif Arif including Gayatri Acharya (WBIEN), and Maria Sarraf (Middle East and North Motoko Aizawa (CTEED), Jo Albert (ENV), Africa Region), and Jane Holt and Konrad Mohammed Bekhechi (LEGOP), Rob Crooks von Ritter (Europe and Central Asia Region). (EASES), John Dixon (ENV), Giovanna Many others contributed, including Angela Dore (EASES), Yoko Eguchi (ESDVP), Armstrong, Gabriela Boyer, Sergio Margulis, Indumathie Hewawasam (AFTERS), Kirsten Oleson, Rocio Sarmiento, and Laura Christiane Kraus (WBIEN), Ken Newcombe Tlaiye (Latin America and Caribbean (ENV), and Nightingale Rukuba-Ngaiza Region); Carter Brandon, Kseniya Lvovsky, (LEGOP). Alethea Abuyuan (ENV) assisted and Bekir Onursal (South Asia Region); the team with research and data. Carter Brandon, Rob Crooks, and Giovanna 48 S U M M A R Y Dore (East Asia and Pacific Region); Anita Indicators, led by Aziz Bouzaher (SASEN); Gordon and Marie-Claude Verlaeten (Africa Partnerships, led by Ken Newcombe (ENV) Region); Hocine Chalal, John Bryant Collier, and Nalin Kishor (WBIEN); Poverty and Nicole Glineur, Roger Gorham, Samuel Environment, led by Julia Bucknall (ECSSD) O'Brien-Kumi, Allan Rotman, Kanthan and Poonam Pillai (WBIEN); Reducing Shankar, Shobha Shetty, Manuel Shiffler, and Vulnerability to Environmental Variability, led Shatory Ueda (Middle East and North Africa by Mahesh Sharma (ENV); Safeguards, led by Region); and Marjory-Anne Bromhead, Julia Stephen Lintner, Jean-Roger Mercier (ENV), Bucknall, Amy Evans, and Vesselina and Glen Morgan (EASES); Strategic Hekimova (Europe and Central Asia Region). Environmental Assessments led by Olav Kjorven (Consultant) and David Hanrahan The Strategy draws on several background (ENV); Urban Air Quality Management, led papers and notes prepared by working groups by Masami Kojima (COCPO) and Magda on the following topics: Capacity Building for Lovei (ENV); Urban Environmental Priori- Environmental Institutions, led by Ina- ties, led by Carl Bartone (INFUD) and David Marlene Ruthenberg (LCSEN) and Hanrahan (ENV); Environmental and Water Mohammed Bekhechi (LEGOP); Climate Resources Management, led by Rafik Hirji and Change, led by Ajay Mathur, Todd Johnson, Hans-Olav Ibrekk (ENV); and World Bank and Mahesh Sharma; Country Assistance and the Global Environment, led by Lars Strategies and Environment, led by Kirk Vidaeus and Gonzalo Castro (ENV). Several Hamilton (ENV); Donor Survey on Environ- of these background papers are summarized mental Aid Effectiveness, led by Hans-Olav in the annexes. Ibrekk (ENV); Environment and Natural Resources chapter in Poverty Reduction Strategy Judith Moore (ENV) organized external Paper Sourcebook, led by Julia Bucknall consultations in collaboration with regional (ECSSD), Kirk Hamilton (ENV), Nalin coordinators: Gabriela Boyer (LCSES), Kishor (WBIEN), and Poonam Pillai Giovanna Dore (EASES), Elena Heitman (WBIEN); Health and Environment, led by (Consultant), Vandana Sareen (ECSSD), Kseniya Lvovsky (SASEN) and Maureen Maria Sarraf (MNSRE), and Marie-Claude Cropper (DECRG); Natural Resource Verlaeten (AFTE1), as well as Anita Gordon Management, led by Jan Bojo (AFTE1) and (Consultant) and Elke Nickel (Consultant), Stefano Pagiola (ENV); Outcomes and who worked on the North American and 49 Making Sustainable Commitments -- An Environment Strategy for the World Bank Western European consultations. Martin Veldhuizen and Gerald West (Multilateral Fodor (ENV) managed the electronic web Investment Guarantee Agency). consultation and coordination. The Strategy has also benefited from a review The Strategy team is grateful for the guidance of the Bank's environmental performance and comments from Marisela Montoliu undertaken by the Operations Evaluation Munoz (Operations Policy and Country Department (OED). This review included an Services). Many others provided valuable analysis of the Bank's environmental policies, comments, advice, and input to the Strategy: procedures, and activities and their impacts; regional consultation meetings with a range of John Briscoe, Csaba Csaki, Jim Douglas, stakeholders; and two electronic discussion Odin Knudsen, Robin Mearns, and Robert forums. The Strategy team received valuable Thomson, (Rural Development); Steen comments from the following in OED: Jorgensen (Social Development); Nemat Robert Picciotto, Greg Ingram, Alain Barbu, Talaat Shafik (Private Sector and Infrastruc- Andres Liebenthal, and Jed Shilling. Annex L ture); Jamal Saghir and Lee Travers (Infra- summarizes the OED's recommendations and structure, Water and Sanitation); John Flora the Bank responses and actions outlined in and Ken Gwilliam (Urban Transport); Carl the Strategy. Bartone (Urban Development); Chas Feinstein and Richard Spencer (Energy); The Strategy team is grateful for the con- Mariam Claeson and Christopher Lovelace structive discussions and comments provided (Health); Michael Klein and Syed A. Mahmood (Private Sector Development); by the Committee for Development Effec- Kiran Pandey, Jo Ritzen, Zuarak Shalizi, and tiveness and the Board of Directors. David Wheeler (Development Economics); Giovanna Prennushi (Poverty); John Todd Editorial support was provided by Bob (Corporate Strategy Group); Nicolette Livernash (Consultant). Additional editorial Dewitt (Legal); Manuel Penalvar-Quesada advice was provided by Nancy Levine, Daniel (South Asia Region), Kathleen Stephenson Litvin, and Jenepher Moseley (Consultants). (Resource Mobilization); Richard Caines, Jim Cantrell (ENV) managed desktop Gavin Murray, Andreas Raczynski, Bernard publishing, design, and production. Adminis- Sheahan, and Peter Woicke (International trative and logistical support were provided by Finance Corporation); and Harvey Van Isabel Alegre, Sriyani Cumine, Nenuca 50 S U M M A R Y Munoz Robles, Vessela Radeva Stamboliyska, We are indebted to all of the government and Jason Steele (ENV). agencies, expert organizations, and individuals who generously shared their time and Many organizations and individuals outside knowledge with us. In each region some the Bank provided constructive oral or written organizations assumed special roles in the comments. These comments have been process. In Africa, meetings were organized valuable inputs in shaping the Strategy. We by the Environmental Liaison Centre are indebted to the hundreds of people who International (ELCI, Nairobi, Kenya); the participated in the meetings and who pro- World Conservation Union (IUCN) Country vided thoughtful comments in person, by Office in Pretoria, South Africa; and the mail, or by e-mail. Because of space con- IUCN Country Office in Ouagadougou, straints, we can only acknowledge a few of the Burkina Faso. EnerWise International organizations that helped organize meetings; submitted an independent report of the however, we thank all the individuals and meeting held in South Africa. organizations that participated. Their contribution was invaluable. In Asia, the Japanese Foundation for Ad- vanced Studies on International Development We thank the governments of Japan, Norway, (FASID) supported a regional meeting in Sweden, and Switzerland for their financial Bangkok, Thailand; the Foundation for the support, which made the consultations Philippine Environment and Monitor possible. We thank Monitor International International prepared reports of the meeting. (Annapolis, USA) for their advice, convening In Japan, meetings were organized by and facilitation skills, and their independent reports of a number of the meetings. We Keidanren (Japan Federation of Economic thank the members of the GEF-NGO Organizations), the Environment Assistance network, for their participation in most of the Study Group of the Japan International meetings, helping to identify and convene Cooperation Agency, the Japan Bank for participants, and contributing to reports on International Cooperation, the Economic findings. We also thank Stratos, Inc. (Ottawa, Cooperation Bureau of the Ministry of Canada) for their advice and facilitation of Foreign Affairs, the International Bureau of the final joint OED/ENV workshop held in the Ministry of Finance, the Ministry of the Washington, DC. Environment, and FASID. 51 Making Sustainable Commitments -- An Environment Strategy for the World Bank In the Europe and Central Asia Region, the profit organization that specializes in clean Regional Environment Center (Budapest, production and environmental management Hungary), the Bank's office in Moscow, and (San Jose, Costa Rica), as well as the United the Ministry of Environment of Georgia Nations Environment Programme (UNEP) organized regional meetings. CEEWEB and for its active involvement in each of the the Georgian Center for the Conservation of sessions. The Caribbean Conservation Wildlife provided independent reports on the Association and Fundacion Ecologica meetings held in Hungary and Georgia. Universal provided independent reports on the meetings in Costa Rica and Brazil. In the Middle East and North Africa, IUCN provided assistance with the first consultation For assistance in Western Europe, we thank in Amman, Jordan; for the second meeting, to Euronatur (European Natural Heritage the Ministries of Planning and Environment Fund), the German Federal Ministry for in Jordan provided assistance. Economic Co-Operation and Development (BMZ), the Swiss State Secretariat for We would like to acknowledge the following Economic Affairs (SECO), and U.K. Depart- organizations in Latin America and the ment for International Development (DFID). Caribbean: Central American Commission for Environment and Development (CCAD, In North America, we would like to acknowl- El Salvador), the Fundación Futuro edge the Bank Information Center (Wash- Latinoamericano (Quito, Ecuador), the ington DC, USA), Canadian International Fundación Vida (Cartagena, Colombia), Development Agency (CIDA), the North- Nouveau Promoções e Marketing Direto (Rio South Institute (Ottawa, Canada), and the de Janeiro, Brazil), and CEGESTI, a non- World Affairs Council (San Francisco, USA). 52